BULLSHIT!!!
Health News
Medicare Advantage cost U.S. taxpayer $283 billion extra
May 12 (UPI) -- Shifting Medicare patients to Medicare Advantage has cost the U.S. taxpayer almost $300 billion since the program began in 1985, researchers say.
The study, published online in the International Journal of Health Services, found the private insurance companies that participate in Medicare under the Medicare Advantage program and its predecessors have cost the publicly funded program for the elderly and disabled an extra $282.6 billion since 1985 -- most over the past eight years.
Dr. Ida Hellander, policy director at Physicians for a National Health Program, a non-profit group; Dr. Steffie Woolhandler and Dr. David Himmelstein, both of the City University of New York School of Public Health, visiting professors at Harvard Medical School and co-founders of PNHP; said in 2012 alone, private insurers were overpaid $34.1 billion -- or $2,526 per Medicare Advantage enrollee.
These are billions that should have been spent on improving patient care, shoring up Medicare's trust fund or reducing the federal deficit, the researchers said.
Since 1985, in an effort to lower the cost of Medicare, Congress allowed Medicare to contract with private insurance plans -- previously referred to as Medicare HMOs and now called Medicare Advantage plans. Such plans, most of them for-profit, currently cover about 27 percent of Medicare enrollees. Currently, UnitedHealth and Humana together operate about one-third of such plans.
Medicare pays these privately run plans a "premium" per enrollee for hospital and physician services -- averaging $10,123 in 2012 -- based on a prediction of how costly the enrollee's care will be.
The study found private insurers cherry-pick healthier beneficiaries who cost less to care for, guaranteeing large profits -- although private plans must accept all seniors who choose to enroll, they cherry-pick by selectively recruiting the healthiest seniors through advertising, office location, etc.
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Medicare Advantage was to cut Medicare, but cost $283 billion more - UPI.com